Monday, 12 August 2013 00:23
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Industry leader Dulux introduces new ‘Ask Dulux’ service to help customers
By Cheranka Mendis
The paint industry is facing bleak times as it continues to experience drop in volume for the second year in a row, with people opting to hold on to their money and let their walls lose colour instead of letting their wallets get lighter.
Market leader and household name for paints in Sri Lanka and subsidiary of the largest coatings producer in the world, Akzo Nobel Paint Lanka has experienced grey times over the last two years, even though their volume drop is said to be lesser than that of others operating in the business. Managing Director Gerald De Saram at a media discussion last week noted that in 2012, the drop in volume was a significant one which has continued in 2013 as well.
The drop came after the industry experienced brighter times with hotels and other smaller establishments took to renovate and redecorate in preparation for the influx of tourists, just as soon as the war ended.
“With the renovations, the paint business took off. Largely, all they were doing is repainting the rooms to get it ready for the next season after the end of war, and they needed it ready by October. The next phase was where existing hotels were partly or fully demolished and rebuilt, which too contributed to our takeoff.”
However, the big infrastructure developments that took place were largely in areas such as roads, ports, and highways, which are not big consumers of paint. Things may pick up, he said, but Sri Lanka joins a list of developing countries in which 70-80% of paint is consumed by general consumers for households, through extensions and renovations.
“However, this is not happening. Consumers are not buying paint,” De Saram said. The reason, he deduced, is people’s fear of interest rates and not having enough savings. “People would rather not spend on this kind of thing.”
This is not something specific to the paint industry, he asserted. “We see volumes declining not only in the paint industry but also in other industries such as FMCG products. This means people are holding on to their money and not spending.”
Another concern for the industry is collections. As paint sits on dealers’ shelves gathering dust, dealers are unable to pay, putting the paint companies in a fix. However, Dulux is still managing to hold fort, even during the bleaker times. “From the feedback we get, I think we are doing better, much better than most,” De Saram acknowledged.
“For a category like paint to have a volume drop of 8-10% when most others are experiencing far bigger drops is due to two key reasons,” he remarked. “The power of the brand and people’s trust in the brand, and the quality of people in the organisation.” He said: “You’ll always find that when money gets tight, credit gets tight, and banks are not giving housing loans, so there is a squeeze on people’s ability to spend.” In such an environment, it becomes that much more important to not make mistakes when a household decides to renovate or redecorate. “You only have one shot at it.”
With this in mind, and backed by the constant inquiries by consumers on paint, what products to use, how to use it, whom they should talk to, quantity needed, where to find a good painter etc., Dulux last week launched the ‘Ask Dulux’ hotline, a value added service for consumers to gather information about all aspects of paint and coating. Now, by dialling 0710555555, customers will be able to speak to a skilled group of people who will assist them in finding the best option to suit their needs.
“Dulux is the epitome of colour, lifestyle and decoration,” De Saram noted. “The brand Dulux is an iconic brand in this country with a high top of mind record. As such, Dulux has become a one-stop shop within the coatings field, as we have either been involved or have access to information on all areas in the said sectors. With that, whenever customers have anything to ask, they call us.” They noted that there is a latent need for someone with authority and the necessary background to help people when it comes to painting.
Pointing out that while painting, when reduced to its bare bones, is a smelly, messy job that people do not want to do every day, he noted that the end result of a well painted house or room is extremely rewarding. “It’s rewarding to those applying the paint to the point; a lot of our customers are beginning to apply paint themselves without getting contractors. They get to dabble with colour and have the satisfaction of seeing a room transform.”
He said: “We need to enable our consumers. We need to talk directly to them, understand them, find out their problems and really take the fear of decoration away, to let people experiment with colour and let them be more carefree while holding their hand through the whole process. It is a balancing act.”
The new value added service has become a hit already, he said, with the lines constantly buzzing with inquiries. The staff has been trained to answer both the technical and the practical side of things. The service is expected to be expanded in the coming months to keep up with the overwhelming response. 80-90% of the inquiries come from key cities in the island – Colombo and Kandy.
Being the first formal service for consumers in the paint industry, De Saram noted that this is a formalisation of what they have been doing on a regular basis. The service will resonate well with customers and make access to paint larger and make dabbling with colour less daunting than it is currently.
